SDI de Mexico (SDM), a subsidiary of SDI, is the largest on-site integrated supplier in Mexico.
SDI de Mexico operates as two legal companies in Mexico – Strategic Distribution Services de Mexico, S.A. de C.V. (Services Maquiladora) and Strategic Distribution Marketing de Mexico, S.A. de C.V. (Border Marketing Company). We have been providing MRO supply chain solutions in Mexico since 1996, and operate sites from Mexico City to Baja, California.
Headquartered in Cuidad Juarez, Chihuahua, SDI de Mexico provides value in a traditionally “under-managed” segment of our customer’s business by offering a complete, fully integrated, supply chain management service for the Strategic Sourcing, Procurement and Inventory Management of your Maintenance, Repair, and Operating (MRO) materials. Depending on our customer needs, SDI de Mexico manages all or parts of the full MRO Supply Chain.
SDI de Mexico provides complete MRO Supply Chain services and establishes the optimum supply chain for Material and Services based on client-specific needs. Our supplier network is a combination of local regional and national suppliers as well as USA, Asia and Europe as needed. SDI also manages all importation processes and controls, translating into less exposure and workload for our clients. We offer flexible business models, incorporating storeroom management, e-procurement and forecasted inventory management resulting in a customized program for each client location. SDI de Mexico presents our clients with hard savings as a result of better Freight/Customs management, Spend & Inventory Control/Management, Piece Price reductions (Sourcing) & Continuous Improvement savings. SDI de Mexico, along with SDI and SDI Canada, share the latest technologies available to streamline your MRO supply chain, including Web-based e-catalogs, mobile technology, bar coding, Point of Use dispensing machines and RFID technology.
We use a combination of U.S. and Mexican suppliers to bring you maximum cost savings. Before choosing a supplier, we examine factors like NAFTA restrictions, product quality and price, delivery time, and transportation and importation costs.
U.S. Supplier Network
We capitalize on the existing contracts our U.S.-based parent company, SDI, which works with a vast network of suppliers including national, regional and local.
Mexican Supplier Network
Some commodities are better purchased in Mexico, so we maintain an extensive supply network here in Mexico.
SDI de Mexico is capable of handling all facets of indirect material importations into Mexico, from document preparation (pedimentos) to certificates of origin to paying duties for permanent importations. As a registered comercializadora (border marketing company), SDI de Mexico imports through strategic locations in Laredo, Texas; El Paso, Texas and Calexico, California.
Border Marketing Company
SDI de Mexico’s Border Marketing Company allows goods to be imported on a permanent basis while incurring only minimal duties (usually 0%-5%) levied against the cost of all goods imported (vs. the sales price of the goods). SDI is able to import products on a permanent basis at a significantly lower duty rate than many manufacturing plants in Mexico who typically pay an average duty rate of 12%-20% (on sales price of goods). This permanent importation process allows SDI de Mexico’s customers to benefit from its preferential duty rates, while simultaneously relieving them of the labor-intensive process of importing products and tracking the pedimentos, which is necessary for Mexican customs audits. SDI de Mexico’s Border Marketing Company is granted preferential duties along the border zone and the entire state of Baja California Norte and Baja California Sur. The border zone, or franja fronteriza, as it is often referred, is the area up to 20 kilometers south of the border. Through SDI de Mexico’s permanent importation process, customers are removed from the cost and paperwork of this burdensome process and the potential liability of improper tracking of import pedimentos, which can result in substantial fines and confiscated shipments if not handled properly.
Helping you Understand NAFTA
The North American Free Trade Agreement, or NAFTA, established a free-trade zone in North America and was signed in 1992 by Canada, Mexico, and the United States. Taking effect on January 1, 1994, NAFTA immediately lifted tariffs on the majority of goods produced by the signatory nations. It also calls for the gradual elimination, over a period of fifteen years, of most remaining barriers to cross-border investment and to the movement of goods and services among the three countries. Major industries affected include agriculture, automobile and textile manufacturers, telecommunications, financial services, energy, and trucking. NAFTA also provides for labor and environmental cooperation among member countries.
Benefiting from SDI’s expertise
We staff NAFTA experts who are knowledgeable in current regulations and are prepared for any regulation changes with regards to movement and tracking of indirect materials into and out of Mexico. SDI de Mexico is a registered comercializadora, which gives SDI de Mexico preferential duty treatment for importation of certain indirect materials, which is not available to general maquiladoras or IMMEX companies. SDI assumes the responsibility for complete documentation to NAFTA requirements for our customers. SDM's duties on permanent importations in the Free Trade Zone are less than one percent of the cost of goods.
To address the negative affects of NAFTA Article 303, Mexico created Permisos Sectoriales, the Permiso Sectorial Promotion that effectively lowers to 0% to 7% duties in more than 20 industrial sectors to companies that obtain authorization for this program. SDM takes advantage of this program on behalf of our customers to provide savings on duties which might not otherwise be available.
What is Article 303?
As of January 1, 2001, when NAFTA Article 303 went into effect, no NAFTA member country can waive, reduce, or refund duties conditioned on export to another NAFTA member country.
Tightening Control with an Outsourced Program
We’ve developed a full range of flexible MRO supply chain management solutions. But our Fully Outsourced solution is ideal for organizations concerned with tightening controls and preventing theft. It puts SDI de Mexico’s professionals in charge of your MRO supply chain – from sourcing to security cameras to staffing – for increased visibility, security, and efficiency.
Continuous Improvement with SDI de Mexico
At SDI, our relentless focus on helping clients become better companies goes well beyond the short term. One of the chief benefits of relying on SDI de Mexico for MRO integrated supply is achieving continuous improvement through our focused, cross-functional approach to savings. We identify the hidden opportunities that can often go unnoticed when you’re too close to your own operation or unrealized when you don’t have the resources to apply to the initiatives.
Our continuous improvement Engineers have years of manufacturing experience and employ the business process of Six Sigma to identify opportunities for savings. After an extensive survey of a facility’s costs, our Blackbelts will recommend cost reduction projects including OEM Commercialization and Product Standardization. SDI Black Belts consult with your planners, engineers and production and maintenance personnel to uncover opportunities for savings. We track every MRO savings opportunity – from testing and approval through implementation – then drive the process to deliver significant savings, year after year.
Contact SDI de Mexico
420-B Pan American Drive Suite B-5
El Paso, TX 79907
Calle Misión de los Lagos No. 9031
Tercer Piso, Local 3
Col. Misión de los Lagos
Ciudad Juárez, Chihuahua, Mexico C.P. 32370
Cris Ferregur, VP & General Director
Find Your Industry
- Basic Materials
- Consumer Goods & Services
- Service Industry
SDI is an MRO integrator and partner that really helps drive categorization and a best practice approach.
In the third post in this series on MRO As-a-Service by Spend Matters, Pierre Mitchell and Michael Lamoureux talk about how managing MRO as a process delivers benefits from efficiency to effectiveness and beyond to an evolutionary phase. The next generation of value, MRO-as-a-Service, helps organizations build intelligent, agile, scalable and integrated supply chains (direct and indirect).
The project team has worked its way through Define, Measure, Analyze, and Improve. It’s time to begin the Control phase. The key stakeholders gather to evaluate the solution as implemented and create a plan to sustain the improvements. The goal is to standardize the improved processes, establish an audit schedule and schedule periodic follow-up to identify additional opportunities for improvement.